vontobel summer conference bernhard a fuchs head investor relations holcim ltd

© 2014
Vontobel Summer Conference
Bernhard A. Fuchs, Head Investor Relations
© 2014
Agenda
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Vontobel Summer Conference – June11/12, 2014
Holcim at a Glance
Macro Economic Development and the impact for the cement industry
Merger between Holcim and Lafarge
First quarter 2014 results
Outlook 2014 – Conclusions
© 2014
Holcim at a glance
130 cement plants
around 200 limestone quarries /
450 aggregates operations
1’150 RMX plants in the world
> 70’000 employees
over 5’000 own RMX trucks / more
than 3’000 subcontracted
over 1’600’000’000 cement bags sold
Presence on all five continents and in around 70 countries
2013 Net sales of CHF 19.7 bn and operating EBITDA of CHF 3.9 bn
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Vontobel Summer Conference – June11/12, 2014
© 2014
Agenda
4
Holcim at a Glance
Macro Economic Development and the impact for the cement industry

Merger between Holcim and Lafarge
First quarter 2014 results
Outlook 2014 – Conclusions
Vontobel Summer Conference – June11/12, 2014
© 2014
-6
-4
-2
0
2
4
6
8
10
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
World
Advanced economies

Emerging economies
GDP at constant prices [annual % change]
Forecast
Slightly better economic recovery expected, although
uncertainty remains, …
• Global economic growth is
expected to accelerate slowly
from 3.0% in 2013 to 3.6% in
2014 and 3.9% in 2015 (IMF April
2014)
• Major developed countries to
expand simultaneously for the first
time in several years
• Emerging markets, on balance,
should perform better in 2014
5
Source: IMF World Economic Outlook April 2014
Change in GDP Forecast [January '14 to April'14]
‐0.6
‐0.5
‐‐
0.1
‐0.1
‐‐
0.4
‐0.2 ‐0.2
‐‐
0.1
‐0.1
‐

‐
0.3
2014 2015
[annual %change]
Vontobel Summer Conference – June11/12, 2014
© 2014
fundamental trends support our business …
The right
place to be
Population
growth
Continued
urbanization
Economic growth
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Vontobel Summer Conference – June11/12, 2014
© 2014
Europe
37%
45%
55%
22%
78%
16%
84%
North
America 10%
Asia
Pacific 30%
Latin

America 8%
Africa Middle
East 14%
Europe
18%
North
America 6%
Latin
America 11%
Asia
Pacific 38%
Africa Middle
East 27%
Europe
13%
North
America 5%
Latin
America 10%
Asia
Pacific 42%
Africa Middle
East 29%
1990 2013E 2030E
1990: ~0.8 Bn t 2013E: ~1.7 Bn t 2030E: ~2.7 Bn t
Cement demand Split Mature vs. Emerging markets
Cement demand evolution by region, excl. China
Mature Emerging
*Source: BMI, National cement associations, Holcim estimates
… resulting in long-term cement consumption growth driven

by emerging markets and recovery in Europe and US
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Vontobel Summer Conference – June11/12, 2014
© 2014
Regional Construction Market Growth Forecast [CAGR]
7.1%
1.7%
6.5%
5.6%
4.9%
2.1%
6.6%
8.3%
8.7%
6.0%
5.9%
6.0%
1.4%
4.9%
4.2%
3.7%
0.9%
5.3%
7.2%
7.5%
4.9%
5.0%
Total
WesternEu rop e
EasternEu rope

NorthAmerica
South&Cen tralAmerica
As iaPacific('developed')
As iaPacific('emerging '
w/o India&Chi na))
Chi na
India
MiddleEast&NorthAfrica
Sub‐SaharanAfrica
Prev iousFC[C AGR2010‐2020] CurrentFC[CAG R2013‐2025]
‐1.1%
‐0.3%
‐1.5%
‐1.4%
‐1.2%
‐1.1%
‐1.3%
‐1.1%
‐0.9%
No te:PreviousFCbasedonUSD 2010prices&Curre ntFCbasedonUSD2012pri ces
Change
‐1.1%
‐1.2%
• Long term growth prospects remain
positive for the majority of the regional
construction sectors, driven by sound
fundamentals and mega-trends
• Following the pattern of expected slower
GDP growth, growth projections for the
sector are still strong

• The compounded annual growth rate
(CAGR) in construction spend is
expected to be 6% for the period from
2013 to 2025
Oxford Economics remains positive on the long term
prospects of the global construction sector
Source: Oxford Economics - Global Construction Perspectives 2020 (March 2011) and 2025 (July 2013)
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Vontobel Summer Conference – June11/12, 2014
© 2014
China and North America will attract most of the additional
construction spend, followed by Emerging Asia and India
• In nominal dollar terms, China, North America,
Emerging Asia and India are expected to attract
more than two thirds of global construction
spend
• China is a growth driver with more than a third of 2013-
2025 value growth potential [36% TOT]
• North America is expected to regain momentum driven
by economic recovery and population growth [15%
TOT]
• New Asian Tigers (Indonesia, South Korea, Vietnam
and Philippines) is expected see significant growth over
the period - Indonesia is expected to become the
worlds third largest housing market [12% TOT]
• India considerable growth potential [9% of TOT]
• Latin America (excl. Mexico) will grow at a relatively
low rate [6% of TOT]
• Weak economic fundamentals in Western Europe and
stagnant population will result in low but stable growth

[5% TOT]
• Eastern Europe (driven by Russia and Turkey) is
expected to grow almost as much as India [8% TOT]
• Africa with significant growth rates, however small
overall
Source: Oxford Economics - Global Construction Perspectives 2025 (July 2013)
Global Construction Market [2013-2025]
2'182
914
746
566
489
353
340
314
125
95
China
North
America
AsiaPacific
('e m erging'
w/oIndia&China))
India
Easte rn
Europe
South&
CentralAme rica
MiddleEa st
&NorthAfrica

We st ern
Europe
AsiaPacific
(' de ve loped' )
Sub‐Saharan
Afric a
2013‐2025
Change in U SD bn
No te: FCba sedonUSD2012pri ces
36%
15%
12%
9%
8%
6%
6%
5%
2%
2%
%‐sharein
Globalgrowth
USD bn
in2013
1'677
1'442
783
409
628
650
6%

1'711
1'050
118
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Vontobel Summer Conference – June11/12, 2014
© 2014
5
60
17
26
26
11
19
3
5
68
4
12
7
11
Holcim cement capacity as of December 31, 2013: 206 Mt * China not consolidated
Over the past 10 years Holcim invested about CHF 35 billion to establish a global
footprint unmatched in the industry
Well positioned to address growth in cement demand
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Vontobel Summer Conference – June11/12, 2014
© 2014
• Global footprint - the result of
organic and inorganic growth
initiatives

• Operating cash flow more than
sufficient to cover CAPEX and
financial investments
• Current cement capacities incl.
ongoing projects sufficient for
growth without major new
investments
• Increasing capacity utilization of
existing plants coupled with
ongoing cost reductions to vastly
improve ROIC
• Substantial free cash flow
generation expected for coming
years
Value creation from our existing asset base
• Add nice picture here
-500
500
1'500
2'500
3'500
4'500
5'500
6'500
Cash flow from operating activities CAPEX Financial (de)/investments
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
In CHF million
11
Vontobel Summer Conference – June11/12, 2014
© 2014

Agenda
12
Holcim at a Glance
Macro Economic Development and the impact for the cement industry
Merger between Holcim and Lafarge
First quarter 2014 results
Outlook 2014 – Conclusions
Vontobel Summer Conference – June11/12, 2014
© 2014
Geographical Complimentarity of Portfolios
13
Holcim sales (CHF)
Lafarge sales (CHF)
Global presence of Holcim and Lafarge
Lafarge Holcim Combined
Cement Capacity (mT) 221 206 427
Aggregates volume sold (mT) 193 155 348
RMC volume sold (mm
3
) 31 39 70
Emerging
markets
Developed
markets
Total
# of
countries
73 17 90
Note: pre-disposals, pre-group elimination, post regional elimination
Combined sales by region

(in billion)
3.8
3.2
North America
45%
55%
CHF 7.0 / EUR 5.7
5.4
5.6
Europe
51%
49%
CHF 11.0 / EUR 9.0
1.1
3.3
Latin America
76%
24%
CHF 4.4 / EUR 3.6
5.0
0.9
Africa & ME
85%
15%
CHF 5.9 / EUR 4.8
2.0
Pacific
100%
CHF 2.0 / EUR 1.7
3.3

5.2
Asia
61%
39%
CHF 8.6 / EUR 7.0
Vontobel Summer Conference – June11/12, 2014
© 2014
Unique Value Proposition for Shareholders
14
• New best-in-class global portfolio
• Superior growth and operating profitability
• Significant synergies
• Strict capital allocation discipline and strong capital structure
• Attractive returns for shareholders
Vontobel Summer Conference – June11/12, 2014
© 2014
Deal structure
Company name
Key Transaction Highlights
15
• LafargeHolcim
• Merger of equals
• Company domiciled in Switzerland
• Capitalise on developed markets recovery
• Divestments of assets representing CHF 6bn / EUR 5bn of sales
• 60% exposure to emerging markets post divestments
• No country above c. 10% of sales
• Boards of both companies have unanimously approved the transaction
• Thomas Schmidheiny, GBL and NNS fully support the transaction
• Best growth platform in the industry and superior operating profitability

• CHF 1.7bn / EUR 1.4bn of run-rate synergies
• Strict capital allocation discipline and strong financial structure:
targeted solid Investment Grade credit ratings
• Attractive dividend payout policy
• Exchange ratio of 1 Holcim share for 1 Lafarge share
• Transaction closing expected in H1 2015
Exchange ratio
Rebalanced
portfolio
Value
proposition
Board &
Shareholder
support
Timetable
Vontobel Summer Conference – June11/12, 2014
© 2014
Best-in-Class Portfolio for Growth
16
Emerging Markets
• 60% of pro forma sales
• 13 countries out of our Top 20 with
strong infrastructure needs
2
• 6% CAGR for construction outputs
expected until 2025
3
Developed Markets
• 40% of pro forma sales
• Significant recovery potential

Diversification and
Balance
• Present in 90 countries
• No single country representing
more than c. 10% of sales
Africa/MiddleEast
N.America
Asia/Pacific
LatAm
c.60%Emerging
markets
Eastern
Europe
c.40%Developed
markets
Western
Europe
Capturing the recovery in developed markets
while ensuring long-term sustainable growth in emerging markets
1 Pro forma of divestments
2 Ranked below 50 in the World Economic Forum Global Competitiveness index for quality of overall infrastructure 2012-2013
3 Global Construction 2025 - A global forecast for the construction industry to 2025
Portfolio breakdown (2013 sales)
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Vontobel Summer Conference – June11/12, 2014
© 2014
Operational Synergies
17
» Operational optimisation / best practices
• E.g. logistics, distribution, IT, energy consumption

CHF 240 m / EUR 200 m
» Procurement
• Savings in overlapping countries
• Economies of scale in centralized procurement for
selected categories
» Selling, General and Administrative
» Innovation deployed on a larger scale
• Cross-fertilization of value-added product portfolios
CHF 410 m / EUR 340 m
CHF 300 m / EUR 250 m
CHF 240 m / EUR 200 m
CHF 1.2 bn / EUR 1.0 bnTotal synergies at EBITDA level
Source Estimated run-rate synergies
Vontobel Summer Conference – June11/12, 2014
© 2014
Financing & Cash Flow Synergies
18
» Financing savings
CHF 120 m / EUR 100 m
(from end of year 1)
Up to CHF 240 m / EUR 200 m (over time)
» Capital expenditures
• Best practice on maintenance capex
• Higher efficiency on expansion capex
» Working capital savings
• Sharing of best practices
CHF 250 m / EUR 200 m
CHF 500 m / EUR 410 m
(over 3 years)
CHF 1.7 bn / EUR 1.4 bn

Total synergies
Source Estimated run-rate synergies
Vontobel Summer Conference – June11/12, 2014
© 2014
CHF 1.7 bn / EUR 1.4 bn run-rate synergies
19
0.4/0.3
0,8/0.7
1.2/1.0 1.2/1.0
0.1/0.1
0.1/0.1
0.2/0.2
0.1/0.1
0.2/0.1
0.3/0.2
0.3/0.2
(0.6)/(0.5) (0.6)/(0.5)
0.2/0.1
0.2/0.1
0.2/0.1
Year 1 Year 2 Year 3 Run-Rate
Operational Synergies Financing Synergies Capex Synergies Implementation Costs Working Capital Savings
CHF 0.1 / EUR 0.0
CHF 0.7 / EUR 0.5
CHF 1.7 / EUR 1.4
CHF 1.7 / EUR 1.4
Pre-tax Synergies (CHF bn / EUR bn) – Phased in over 3 years
Vontobel Summer Conference – June11/12, 2014
© 2014
Key Steps to Closing

20
Works Council
Consultations
• Lafarge and Holcim Works Council consultations initiated immediately
Divestments
• Process to start immediately
Integration
Preparation
• Prepare an integration plan for implementation straight after closing
of the transaction
Regulatory
Approvals
• Regulatory proceedings initiated in all relevant jurisdictions shortly
Shareholder
Approval and
Acceptances
• After regulatory approvals:
 Holcim EGM approvals
 Launch public exchange offer
Transaction Closing expected in H1 2015
Vontobel Summer Conference – June11/12, 2014
© 2014
Agenda
21
Holcim at a Glance
Macro Economic Development and the impact for the cement industry
Merger between Holcim and Lafarge
First quarter 2014 results
Outlook 2014 – Conclusions
Vontobel Summer Conference – June11/12, 2014

© 2014
• Like-for-like sales increase in all segments
• Strong momentum of Holcim Leadership Journey continues
• Significant increase in operating profit and further margin
improvement
• Substantial adverse exchange rate impact
• Improved cash flow from operating activities due to strong
operating EBITDA and further reduction in NWC
• Portfolio management in Europe received approval in the
Czech Republic
• Simplification of group structure in India close to completion
• Merger of equals with Lafarge announced – Creating the most
advanced Group in the building materials industry
Q1 2014 Milestones
22
Vontobel Summer Conference – June11/12, 2014
© 2014
Holcim Leadership Journey is on track
All figures in million CHF
Customer Excellence 31 135 118 284 500
- Customer focus
- Value management
- Pricing policies
- Marketing and sales forces skills and motivation
Cost Leadership 127 808 119 1,054 > 1,000
- Energy and AFR 40 187
31
258
> 300
- Logistics 0 162

25
187
> 250
- Procurement 48 203
41
292
> 250
- Fixed cost 39 255
22
316
> 200
Total increase
1)
158 943 237 1,338 > 1,500
Cash cost to achieve the savings (one-off) 239
3)
000
Additional CAPEX net
2)
48 170 17 235 100-180
3) Original amount w as projected < CHF 120 million f or 2013; having spent already CHF 239 million, no additional restructuring cash costs are foreseen at this stage
achieved achieved Q1
2014
cum. Target
achieved
cumulative since
2012
2012 2013
1) The base line is the financial year 2011 amounting to CHF 2,308 million (excluding one-of f charges 2011 of CHF 375 m and w ithout fluctuations in currency, changes
in scope of consolidation and similar market conditions). Adjusted f or the sale of 25% of Cement Australia and Siam City Cement, the new base is CHF 2'193 million.

2) Additional CAPEX net w ill come from prioritization of CAPEX based on the speed of the returns (ROIC).
Current energy fund of CHF 100 million w ill be maintained through the period 2012 - 2014.
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Vontobel Summer Conference – June11/12, 2014
© 2014
Key financial figures
Full year
2013 2013 2014
LFL CIS FX Total
Sales volumes
- Cement (mt)
138.9 32.1 33.0 4.4% -1.5% 2.9%
- Aggregates (mt)
154.5 28.6 29.2 3.5% -1.3% 2.2%
- Ready-mix (mm
3
)
39.5 8.4 8.2 1.1% -3.1% -2.0%
Net sales
19,719 4,323 4,088 7.8% -2.5% -10.7% -5.4%
Operating EBITDA
3,896 650 617 10.1% -2.0% -13.3% -5.1%
Operating profit
2,357 270 295 28.4% 1.9% -20.9% 9.3%
Net income
1,596 295 179 -39.5%
1,272 187 80 -57.5%
Cash flow from operating
activities
2,787 -323 -243 28.2% -6.0% 2.7% 24.9%

EPS in CHF
3.91 0.58 0.24 -58.6%
Million CHF
(if not otherwise stated)
1st Quarter
+/-
Net income - shareholders
of Holcim Ltd
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Vontobel Summer Conference – June11/12, 2014
© 2014
Net sales by region
2118
1984
1683
854
827
723
1161
1032
1184
478
441
444
239
203
206
Million CHF
∆ Q1 13 / Q1 14 LFL Change in
structure

Currency Total
Asia Pacific
4.0% -3.8% -15.3% -15.1%
Latin America
2.3% 0.0% -14.8% -12.5%
Europe
17.2% -1.8% -0.6% 14.8%
North America 9.8% -1.5% -7.6% 0.7%
Africa Middle East
7.4% -3.5% -2.2% 1.7%
Total 7.8% -2.5% -10.7% -5.4%
Q1 2012
Q1 2013
Q1 2014
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Vontobel Summer Conference – June11/12, 2014